Wires

Australia's Lynas shares dive 19 pct on rare earths plant delay

MELBOURNE, Oct 11 (Reuters) - Shares in Lynas Corp Ltd

slid 19 percent on Thursday after the company said itwould not be able to start production in October at itsMalaysian rare earths plant because a court had extended a holdon its operating licence to Nov. 8.

Lynas shares fell to a six-week low of A$0.69 in earlytrade, reflecting worries that the company will need to raiseequity to shore up its funds the longer the delay runs.

(Reporting by Sonali Paul; Editing by Chris Gallagher)

((Sonali.Paul@thomsonreuters.com)(+61 3 9286 1419)(ReutersMessaging: sonali.paul.thomsonreuters.com@reuters.net))

Keywords: LYNAS SHARES/